Fed Governor Waller says more hikes likely but timing remains flexible

At a Central Bank of Turkey event in Istanbul, Federal Reserve Governor Christopher Waller warned that more interest-rate hikes are probably required to steer inflation back to the Fed’s 2% target, but emphasized flexibility in the timing of those moves. He suggested that hikes need not be consecutive, allowing the Fed to consider a pause at its October meeting while still planning a possible quarter-point increase in December if the economy continues to show low unemployment and solid growth.

Waller cited a stronger-than-expected economy, ongoing energy price pressures from the Iran war, and rising demand from artificial-intelligence development as reasons to keep rates higher. He expressed confidence that tighter policy would not trigger a damaging slowdown but cautioned that accelerating inflation could reset expectations. His remarks align with other Fed officials who have signaled a steady-rate stance for October before a likely December hike. The comments come after the Fed’s September quarter-point increase and reflect the central bank’s effort to balance inflation control with economic stability.